The rebate given to the retailer by the wholesaler to enable him make profit is known as

The rebate given to the retailer by the wholesaler to enable him make profit is known as a trade discount. A trade discount is a reduction in the listed price of a product or service that is given by a supplier to a customer for meeting certain conditions, such as purchasing a certain quantity of the product or agreeing to pay within a certain period of time. Trade discounts are usually given to retailers or wholesalers who buy in bulk, and are used to incentivize them to purchase more from the supplier. This discount is not shown on the invoice and is usually calculated on the net amount after deducting all other discounts. The trade discount helps the retailer or wholesaler to increase their profit margins and remain competitive in the market.